In the latest trading session, Applied Materials (AMAT) closed at $88.12, marking a -1.23% move from the previous day. This change lagged the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.15%, while the tech-heavy Nasdaq added 0.39%.
Coming into today, shares of the maker of chipmaking equipment had lost 2.96% in the past month. In that same time, the Computer and Technology sector lost 4.49%, while the S&P 500 lost 3.51%.
Wall Street will be looking for positivity from Applied Materials as it approaches its next earnings report date. The company is expected to report EPS of $2.01, up 3.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.66 billion, up 8.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.68 per share and revenue of $25.7 billion, which would represent changes of +12.28% and +11.43%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Applied Materials. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Applied Materials currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Applied Materials currently has a Forward P/E ratio of 11.62. This represents a discount compared to its industry's average Forward P/E of 13.22.
It is also worth noting that AMAT currently has a PEG ratio of 1.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Semiconductor Equipment - Wafer Fabrication stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.
The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 223, which puts it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Applied Materials, Inc. (AMAT) : Free Stock Analysis Report
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